HomeMy WebLinkAboutNS-2944 - Amending Certain Sections of Chapter 40 to Allow Commercial Cannabis Cultivation, Manufacturing, and Distribution Activities for Medicinal and Adult-Use Purposes...LS 5.1.18
ORDINANCE NO. NS -2944
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING CERTAIN SECTIONS OF
CHAPTER 40 TO ALLOW COMMERCIAL CANNABIS
CULTIVATION, MANUFACTURING, AND DISTRIBUTION
ACTIVITIES FOR MEDICINAL AND ADULT -USE
PURPOSES, AMENDING CERTAIN SECTIONS OF
ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA
MUNICIPAL CODE PERTAINING TO MEDICINAL
MARIJUANA TO ENSURE CONSISTENCY WITH
CHAPTER 40 OF THE MUNICIPAL CODE, AND
AMENDING CERTAIN SECTIONS OF CHAPTER 8 OF THE
SANTA ANA MUNICIPAL CODE PERTAINING TO CODE
ENFORCEMENT
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. In 1996, the California electorate approved Proposition 215, the
Compassionate Use Act which allows a patient, with a doctor's recommendation,
to use cannabis for medical purposes without the fear of prosecution or arrest.
B. In 2003, the California legislature passed Senate Bill 420 (Medical Marijuana
Program Act) which amended the Health and Safety Code to permit the
establishment of medical cannabis dispensaries for the distribution of cannabis
for medical purposes.
C. In 2005, the California Board of Equalization began issuing seller's permits for
sales consisting of medical cannabis.
D. In 2008, the California Attorney General issued guidelines for the security and
non -diversion of cannabis grown for medical use.
E. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical
Marijuana Regulatory Program ordinance ("Measure BB") which was codified in
Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern
medicinal marijuana and the retail sale thereof.
F. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and
Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation
and Safety Act ("MMRSA") further amended in 2016 as the Medical Cannabis
Regulation and Safety Act ("MCRSA"), which established regulations and a state
Ordinance No. NS -2944
Page 1 of 33
licensing system for medical cannabis cultivation, manufacturing, delivery, and
dispensing.
G. The California Marijuana Legalization Initiative, also known as the Adult Use
of Marijuana Act (AUMA or Proposition 64) which the voters of the State of
California approved and passed in 2016, requires that all cannabis processed
and sold in the state of California be subject to professional laboratory testing for
cannabinoid content, toxins, adulterants, pesticides, potency, and other important
elements that affect product safety. Testing must be done at laboratories
licensed by the Bureau of Cannabis Control (BCC) and testing laboratories
cannot co -locate with any other commercial cannabis business. Pursuant to
various State laws, a cannabis testing laboratory may not hold any other license
type, which is intended to ensure neutrality and product safety. Proposition 64
requires testing for some cannabis products by July 1, 2018 and for all products
by January 1, 2019.
H. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal
and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA).
I. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana
Municipal Code, allowing adult -use commercial cannabis retail businesses in the
city, and amended certain sections of Chapters 18 and 21 of the Santa Ana
Municipal Code to ensure consistency with State law and Chapter 40.
J. Chapter 40 of the Santa Ana Municipal Code is intended to contain standards
and regulations to address all commercial cannabis business activities in Santa
Ana, except that medicinal cannabis retail businesses are subject to the
standards and regulations in Article XIII of Chapter 18.
K. Since November 2014, the City of Santa Ana has permitted the retail sale of
cannabis for medicinal purposes and since January 2018 for adult -use purposes.
On March 20, 2018, the City Council adopted Ordinance NS -2941 and NS -2942,
allowing and regulating commercial cannabis testing laboratories.
L. The City Council of the City of Santa Ana intends that nothing in this article
shall be deemed to conflict with federal law as contained in the Controlled
Substances Act, nor to otherwise permit any activity that is prohibited under that
Act or other applicable law.
M. The City of Santa Ana has a compelling interest in ensuring that cannabis is
not cultivated, manufactured or distributed in an illicit manner, in protecting the
public health, safety and welfare of its residents and businesses, in preserving
the peace and quiet of the neighborhoods in which these uses may operate, and
in providing access of cannabis to residents.
N. The city council has held a duly noticed public hearing in connection with
consideration and adoption of this ordinance.
Ordinance No. NS -2944
Page 2 of 33
Section 2. This Ordinance is adopted pursuant to the authority granted by the
California Constitution and State law, including but not limited to: Article IX, Section 7 of
the California Constitution, the Compassionate Use Act of 1996 (California Health and
Safety Code Section 11362.5), the Medical Marijuana Program (California Health and
Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act
(AB 266, AB 243, and SB 643; hereafter "MMRSA"), the Adult Use of Marijuana Act
(Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act
(SB 94; hereafter "MAUCRSA").
Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and
the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review
pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it
can be seen with certainty that there is no possibility that the project may have a
significant effect on the environment. As a result, a Notice of Exemption will be filed
upon the adoption of this ordinance.
Section 4. All provisions of the Santa Ana Municipal Code which are repeated
herein are repeated solely in order to comply with the provisions of Section 418 of the
City Charter. Any such restatement of existing provisions of the Code is not intended,
nor shall it be interpreted, as constituting a new action or decision of the City Council,
but rather such provisions are repeated for tracking purposes only in conformance with
the Charter.
Section 5: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby
amended to read in full as follows:
Chapter 40
ARTICLE 1. REGULATION OF COMMERCIAL CANNABIS ACTIVITIES
OTHER THAN MEDICINAL CANNABIS RETAIL ACTIVITIES
Section 40-1. Purpose and Intent.
A. The purpose and intent of this article is to regulate commercial cannabis
business activities, as defined in this article, in order to ensure the health, safety and
welfare of the residents of the City of Santa Ana by establishing regulations necessary
for commercial cannabis business operating in the City of Santa Ana to obtain and
maintain a Regulatory Safety Permit ('RSP"). Any commercial cannabis businesses
operating in the City of Santa Ana shall at all times be in compliance with current State
Law and this article. All commercial cannabis facilities shall operate in accordance with
the regulations in this article and with the conditions of approval associated with the
applicable zone for the parcel of real property upon which the commercial cannabis
activities are conducted. Any commercial cannabis business shall qualify for and
receive a Regulatory Safety Permit from the City of Santa Ana as provided by this
article and operate only in a zone in compliance with Santa Ana Municipal Code before
commencing with any commercial cannabis business activity. Any commercial cannabis
business without a Regulatory Safety Permit is in violation of this article. The regulations
in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana
Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code
(collectively referred to as "State Law") do not interfere with the right to use adult -use
Ordinance No. NS -2944
Page 3 of 33
cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize
the possession of cannabis as authorized under State Law.
B. Any person operating a medicinal marijuana collective/cooperative (as
defined in Chapter 18 of this Code) as of December 14, 2017, or who has a RSP
application pending to operate a medicinal collective/cooperative, and has met all of the
requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for
the sale of Adult -Use cannabis provided that they enter into the Adult -Use Cannabis
Retailer Operating Agreement with the City.
C. The Commercial Cannabis Operating Agreement shall be a legally binding
written agreement between each commercial cannabis business operator and the City,
executed by the City Manager, or his or her designee, and in a form and substance
satisfactory to the Executive Director of Planning and Building and the City Attorney,
and containing those provisions necessary to ensure that the requirements of this article
are satisfied. A distinct Commercial Cannabis Operating Agreement shall be required
for each location and type of commercial cannabis business activity taking place at an
approved Commercial Cannabis Business.
Section 40-2. Definitions.
The definitions are incorporated herein as fully set forth and are applicable to this
article. All definitions are intended to comply with those set forth by the State of
California for all commercial cannabis business activities.
1. "Applicant' means a person who is required to file an application for a
permit under this article, including an individual owner, managing partner, officer of a
corporation, or any other operator, manager, employee, or agent of a commercial
cannabis business.
2. "Adult -Use" means cannabis or cannabis products that are intended to be
used for non -medicinal purposes by a person 21 years of age or older.
3. "Adult -Use Cannabis Retailer Operating Agreement' or "Operating
Agreement' means the agreement entered into by and between the City and the
commercial cannabis business operator which will specify terms for local hiring and
sourcing, community benefit plans, and fees to compensate for authorized impacts on
City services.
4. "Adult -Use cannabis retail business" means an Adult -Use retail business
that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use
cannabis, or an Adult -Use cannabis product, except as related Business and
Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through
11362.45, as amended from time to time, excepting medicinal cannabis retail.
5. "Authorized City of Santa Ana representative" any police officer, city
employee, contractor or agent of the city designated by the director of any city
Ordinance No. NS -2944
Page 4 of 33
department which has the authority and responsibility to enforce provisions as set forth
in this article.
"Business owner" means any of the following:
a. A person with an aggregate ownership interest of 20 percent or more in
the person applying for a license or a licensee, unless the interest is solely
a security, lien, or encumbrance.
b. The chief executive officer of a nonprofit or other entity.
c. A member of the board of directors of a nonprofit.
An individual who will be participating in the direction, control, or
management of the person applying for a license.
7. "Cannabis" or "cannabis product' means all parts of the Cannabis sativa
Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds
thereof; the resin, whether crude or purified, extracted from any part of the plant; and
every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its
seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified,
obtained from marijuana. "Cannabis" also means marijuana as defined by Section
11018 of the California Health and Safety Code as enacted by Chapter 14017 of the
Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the
plant which is incapable of germination. For the purpose of this chapter, "cannabis"
does not mean industrial hemp as that term is defined by Section 81000 of the
California Food and Agricultural Code or Section 11018.5 of the California Health and
Safety Code.
8. "City' means the City of Santa Ana, a charter city and municipal
corporation.
9. "Commercial cannabis activity" means the cultivation, possession,
manufacture, distribution, processing, storing, laboratory testing, packaging, labeling,
transportation, delivery or sale of cannabis and cannabis products as provided for this
Chapter. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of
this Chapter.
10. "Commercial cannabis business" means a business that obtains a Regulatory
Safety Permit and engages in the cultivation, possession, manufacture, processing,
storing, laboratory testing, labeling, distribution, delivery, or sale of adult -use cannabis,
medicinal cannabis or an adult -use cannabis or medicinal cannabis product, except as
related Business and Professions Code Section 19319, or Health and Safety Code
Sections 11362.1 through 11362.45, as amended from time to time.
11. "Cultivation" means to plant, grow, harvest, dry, cure, grade or trim cannabis,
as defined by California Business and Professional Code Section 26001, as amended
from time to time.
Ordinance No. NS -2944
Page 5 of 33
12. "Customer" means a natural person 21 years of age or over.
13. "Delivery" means the commercial transfer of cannabis or cannabis
products from a retail cannabis business to a customer up to an amount determined to
be authorized by the State of California, or any of its departments or divisions.
"Delivery" also includes the use by a retail cannabis business of any technology
platform owned, controlled, and/ or licensed by the retail cannabis business, or
independently licensed by the State of California under the State law (as amended from
time to time), that enables anyone to arrange for or facilitate the commercial transfer by
a licensed retail cannabis business of cannabis or cannabis products. For the purposes
of this article, "delivery" does not include distribution or purchase of cannabis from a
licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a
licensed cannabis retail business.
14. "Delivery employee" means an individual employed by a licensed retail
cannabis business who delivers cannabis goods from the permitted retail premises to a
customer at a physical address.
15. "Display' means cannabis goods that are stored in the licensed retail
business during the hours of operation.
16. "Distribution" means the procurement, sale, and transport of cannabis or
cannabis products between Licensees.
17. "Edible cannabis product' means manufactured cannabis that is intended
to be used, in whole or in part, for consumption. An edible cannabis product is not
considered food as defined by Section 109935 of the California Health and Safety Code
or a drug as defined by Section 109925 of the California Health and Safety Code.
18. "Free sample" means any amount of commercial cannabis goods
provided to a purchaser of cannabis without cost or payment or exchange of any other
thing of value.
19. "Labor Peace Agreement' means a legally binding agreement between an
employer and a labor organization in which the employer agrees to remain neutral in the
event its employees wish to unionize, as described more fully in Business and
Professions Code 26001(x), as amended from time to time.
20. "License/Licensee" means a license issued by the State and includes both
an A -license (Adult -Use) and an M -license (Medicinal), and the holder of such license.
21. "Manufacturer" means a Licensee that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or
by a combination of extraction and chemical synthesis at a fixed location that packages
or repackages cannabis or cannabis products or labels or relabels its container.
Ordinance No. NS -2944
Page 6 of 33
22. "Manufacturing" means all aspects of the extraction and/or infusion
processes, including processing, preparing, holding, storing, packaging, or labeling of
cannabis products. Manufacturing also includes any processing, preparing, propagating,
holding, or storing of components and ingredients.
23. "Medicinal cannabis patient' is a person whose physician has
recommended the use of cannabis to treat a serious illness, including cancer, anorexia,
AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for
which cannabis provides relief.
24. "Micro -Business" means a commercial cannabis business that cultivates
cannabis on an area less than 10,000 square feet and acts as a licensed distributor,
Level 1 manufacturer, and retailer.
25. "Non-volatile solvent' means any solvent used in the extraction process
that is not a volatile solvent. For purposes of this chapter, a non-volatile solvent includes
carbon dioxide used for extraction, or as it may be defined and amended by the State.
26. "Nursery" means a commercial cannabis Licensee that produces only
clones, immature plants, seeds, and other agricultural products used specifically for the
planting, propagation, and cultivation of cannabis.
27. "Medicinal/medical cannabis" or "Medicinal cannabis product', means
cannabis or a product containing cannabis, including, but not limited to, concentrates,
and extractions, intended to be sold for use by medicinal cannabis patients in California
pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the
California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18
and Chapter 21 of the Santa Ana Municipal Code.
28. "Outdoor cultivation" means the cultivation of cannabis outside a permanent
enclosed building. Outdoor cultivation is prohibited within the City of Santa Ana.
29. "Ownership interest' means an interest held by a person who is an owner
as defined by State of California commercial cannabis regulations or who has a financial
interest in the commercial cannabis business of 20 percent or more.
30. "Package" and "Packaging" means any container or wrapper that may be
used for enclosing or containing any cannabis goods for final retail sale. 'Package" and
"packaging" does not include a shipping container or outer wrapping used solely for the
transport of cannabis goods in bulk quantity to a Licensee.
31. "Person" includes any individual, firm, partnership, joint venture,
association, corporation, limited liability company, estate, trust, business trust, receiver,
syndicate, or any other group or combination acting as a unit, and the plural as well as
the singular.
Ordinance No. NS -2944
Page 7 of 33
32. 'Premises" means the designated structure(s) and land specified in the
application that are in possession of and used by the applicant or Licensee to conduct
the commercial cannabis activity.
33. 'Primary Caregiver" has the same meaning as that term is defined in
Section 11362.7 of the Health and Safety Code, as amended from time to time.
34. "Private Residence" shall have the same definition as that contained in
Health and Safety Code section 11362.2(5) and also means a lawfully established
structure, suitable for human occupancy as required by section 17922 and 17958 of the
California Health and Safety Code. A recreational vehicle does not constitute a lawfully
established structure for the purposes of this article.
35. 'Private security officer" has the same meaning as that term as defined in
the State of California Business and Professions Code section 7574.01.
36. `Purchase" means obtaining cannabis goods in exchange for
consideration.
37. "Purchaser" means a person who is engaged in a transaction with a
Licensee for purposes of obtaining cannabis goods.
38. "Qualified patient' has the same meaning as such term is defined in
California Health and Safety Code section 11362.5, as amended from time to time, and
means a person whose physician has recommended the use of cannabis to treat a
serious illness, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma,
arthritis, migraine, or any other illness for which cannabis provides relief.
39. `Responsible person" means any of the following:
a) A person who causes a Code violation to occur.
b) A person who maintains or allows a Code violation to continue by way of
his or her action or failure to act.
c) A person whose agent, employee, or independent contractor causes a
Code violation by its failure to act.
d) A person who is the owner of, and/or a person who is a lessee or sub
lessee with the current right of possession of, real property where
property -related Code violation occurs.
e) A person who is the on-site manager of a business who normally works
daily at the site when the business is open and is responsible for the
activities of such premises.
40. "Retail business" means a premises where cannabis, cannabis products,
or devices for the use of cannabis or cannabis products are offered, either individually
or in any combination for retail sale, including an establishment that delivers cannabis or
cannabis products as part of a retail sale.
Ordinance No. NS -2944
Page 8 of 33
41. "Regulatory Safety Permit (RSP)" means a permit issued by the City
pursuant to this article to a commercial cannabis business.
42. "Sell," "sale," and "to sell" include any transaction whereby, for any
consideration, title to cannabis is transferred from one person to another, and includes
the delivery of cannabis goods pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return of
cannabis goods by a Licensee to the Licensee from whom such cannabis goods were
purchased.
43. "State" means the State of California.
44. "Testing Facility" or "Testing Laboratory" defined in the Business and
Professions Code section 26001, as amended from time to time, means a laboratory,
facility, or entity in the State that offers or performs tests of cannabis or cannabis
products and that is both of the following:
a) Accredited by an accrediting body that is independent from all other
persons involved in commercial cannabis activity in the State; and,
b) Licensed by the Bureau of Cannabis Control.
45. "Volatile solvent" means any solvent that is or produces a flammable gas or
vapor that, when present in the air in sufficient quantities, will create explosive or
ignitable mixtures. Examples of volatile solvents include but are not limited to, butane,
hexane, propane, and ethanol, or as it may be defined and amended by the State.
46. "Wholesale" means the sale of cannabis goods to a distributor for resale to
one or more retail cannabis businesses.
Section 40-3. Compliance with State and Local Licensing Requirements.
Any commercial cannabis business as defined by the State of California and the
City of Santa Ana shall operate in conformance with all regulations and standards set
forth in this article to assure that the operations of any commercial cannabis business
as defined by the State of California and allowed by the City of Santa Ana are in
compliance with local and State law and are established to mitigate any adverse
secondary effects from its operations.
Commercial cannabis businesses shall be required to obtain a Regulatory Safety
Permit (RSP) from the City of Santa Ana and a State license, and shall comply with any
applicable State licensing requirements, such as operational standards and locational
criteria.
Co -location of commercial cannabis businesses proposed on any one site shall
occur only if authorized by the State and the City of Santa Ana and only if allowed
pursuant to the City's Zoning Code. Any commercial cannabis activity not specifically
permitted by this article is prohibited.
Ordinance No. NS -2944
Page 9 of 33
Section 40-4. Maximum Number of Regulatory Safety Permits for
Commercial Cannabis Retail Businesses.
The total number of cannabis retail businesses in operation shall be determined
based on the number of locations which have been issued a Regulatory Safety Permit
by the City of Santa Ana. In no case shall the City of Santa Ana allow more the than the
following commercial cannabis retail businesses to operate within City limits, regardless
of the location's compliance with any other Section specified in this article:
A. 20 total medicinal cannabis retail businesses (as regulated by Article XIII
of Chapter 18);
B. 30 total adult -use cannabis retail businesses (which could include any or
all of the medicinal cannabis retail businesses)
Section 40-5. Zoning Compliance and Regulatory Safety Permit
Requirements.
Commercial cannabis activities are expressly prohibited in all zones in the City of
Santa Ana; however, specific commercial cannabis businesses are allowed as a special
use in the Industrial zone (M-1, M-2). The allowed current permit types are described in
Table 40-5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a
Regulatory Safety Permit. No commercial cannabis business may operate in the City of
Santa Ana without a Regulatory Safety Permit.
This Land Use Table 40-5 shall be used to determine whether a commercial
cannabis business is permitted — "P", or not permitted — "X". Any commercial cannabis
business in the City of Santa Ana shall also operate in compliance with the City's zoning
ordinance. If a Zoning District is not listed in the Land Use Table in this section then the
use is expressly not permitted.
Ordinance No. NS -2944
Page 10 of 33
M -1M-2
Regulatory
Business Activities
Use Type
Land Use Classification
Zone
Zone
Permit
Required
Cultivator
I Indoor only
( P
I P
I Yes
NA
Cultivator
Outdoor or mixed -light
X
X
Nursery
Indoor/Outdoor - Type D
X
X
NA
Manufacturing
Manufacturing
P
P
Yes
Medicinal Retail
Yes
Retail
P
F AM
(SAMC Chapter 18)
Retail
Adult -Use Retail
P
P
Yes
Ordinance No. NS -2944
Page 10 of 33
Land Use Classifications:
Commercial A - permitted cultivation area: 0 to 5,000 square feet
Commercial B — permitted cultivation area: 5,001 to 10,000 square feet
Commercial C — permitted cultivation area: 10,000 to 22,000 square feet
Commercial D — permitted cultivation area: 22,000 square feet
Section 40-6. Separation Requirements for Commercial Cannabis Retail
Businesses.
=_V
(a) No commercial cannabis retail business shall be located within 1,000 feet of
(1) School (K-12) as defined by Section 11362.768 of the Health and Safety
Code; or
(2) Park; or
(3) Existing Residential zones in place on November 4, 2014.
(b) No commercial cannabis retail business shall be located within 500 feet of
another retail cannabis business, except for permitted co -location.
Section 40-7. Separation Requirements for Non -Retail (Cultivation,
Manufacturing, Testing Laboratory, and Distribution) Commercial Cannabis
Businesses.
(a) No non -retail commercial cannabis business shall be located within 1,000
feet of any:
(1) School (K-12) as defined by Section 11362.768 of the Health and Safety
Code; or
(2) Park; or
(3) Existing Residential zones in place on November 4, 2014.
Section 40-8. General Provisions for Commercial Cannabis Activities in the
City of Santa Ana.
1. Regulatory Safety Permit Required
Ordinance No. NS -2944
Page 11 of 33
Adult -Use and/or Medicinal
Yes
Testing Laboratory
P
P
Industrial
Distribution
Freight/Transport
P
P
Yes
Cultivation / Retail / Manufacture /
Micro -Business
X
X
Distribution
NA
Land Use Classifications:
Commercial A - permitted cultivation area: 0 to 5,000 square feet
Commercial B — permitted cultivation area: 5,001 to 10,000 square feet
Commercial C — permitted cultivation area: 10,000 to 22,000 square feet
Commercial D — permitted cultivation area: 22,000 square feet
Section 40-6. Separation Requirements for Commercial Cannabis Retail
Businesses.
=_V
(a) No commercial cannabis retail business shall be located within 1,000 feet of
(1) School (K-12) as defined by Section 11362.768 of the Health and Safety
Code; or
(2) Park; or
(3) Existing Residential zones in place on November 4, 2014.
(b) No commercial cannabis retail business shall be located within 500 feet of
another retail cannabis business, except for permitted co -location.
Section 40-7. Separation Requirements for Non -Retail (Cultivation,
Manufacturing, Testing Laboratory, and Distribution) Commercial Cannabis
Businesses.
(a) No non -retail commercial cannabis business shall be located within 1,000
feet of any:
(1) School (K-12) as defined by Section 11362.768 of the Health and Safety
Code; or
(2) Park; or
(3) Existing Residential zones in place on November 4, 2014.
Section 40-8. General Provisions for Commercial Cannabis Activities in the
City of Santa Ana.
1. Regulatory Safety Permit Required
Ordinance No. NS -2944
Page 11 of 33
a. Each commercial cannabis business shall obtain a Regulatory Safety
Permit (RSP) specific to the business activity defined by the State pertaining to that
activity. The only allowed current permit types pursuant to this article are for commercial
cannabis retail sales and cultivation, distribution, manufacturing, and testing
laboratories/facilities. Co -location is permitted pursuant to Section 40-9.3.1.
b. It shall be unlawful for any person, as defined by this ordinance, to engage
in, conduct or carry on, in or upon any premises within the City of Santa Ana any
commercial cannabis business without a RSP. A commercial cannabis business shall
register and obtain a RSP from the City of Santa Ana prior to operation. The RSP
applicant shall pay an annual non-refundable application fee in an amount established
by the City Council.
C. A copy of the RSP shall be displayed at all times in a place visible to the
public.
d. A RSP shall be valid for a period of one (1) year from the date of issuance,
unless sooner revoked. No permit granted herein shall confer any vested right to any
person or business for more than the above -referenced period.
2. Maintenance of Records and Reporting
All records shall be maintained by the commercial cannabis business for a period
of five (5) years and shall be made available by the commercial cannabis business to an
authorized City of Santa Ana representative upon request. If they are not produced as
requested, the City may seek a search warrant, subpoena, or court order. In addition to
all other formats that the commercial cannabis business may maintain, these records
shall be stored by the business at the location in a printed format in a fire -proof safe or
filing cabinet. Any loss, damage or destruction of the records shall be reported to the
Police Department within 24 hours of the loss, destruction or damage.
a. The business shall obtain and maintain a valid Seller's Permit from the
State Board of Equalization.
b. Financial records include, but are not limited to: bank statements, sales
invoices, receipts, tax records, and all records required by the California
State Board of Equalization under Title 18 California Code of Regulations
section 1968.
G. Personnel records, including each employee's full name, address, phone
number, social security, or individual tax payer identification number, date
of beginning employment, and date of termination of employment if
applicable.
d. Training records, including but not limited to the content of the training
provided and the names of the employees that received the training.
Ordinance No. NS -2944
Page 12 of 33
e. Contracts with other businesses regarding commercial cannabis business
activity.
Permits, licenses, and other local authorizations to conduct the
commercial cannabis business activity.
g. Security records, as outlined in the Operational Standards for All
Commercial Cannabis Business Activities.
h. Proof of building ownership or landlord letter acknowledging business
type.
Proof of insurance.
3. Operational Standards for All Commercial Cannabis Business
Activities
a. The location, interior and exterior, shall be monitored at all times by web -
based closed circuit television for security purposes. The camera and recording system
must be of adequate quality, color rendition and resolution to allow the ready
identification of any individual committing a crime anywhere on or adjacent to the
location. The recordings shall be maintained unaltered in a secure location for a period
of not less than ninety (90) days. The Police Department may request the recordings in
connection with an investigation.
b. All controlled access areas, security rooms and all points of
ingress/egress to limited access areas and all point of sale (POS) areas shall have fixed
camera coverage capable of identifying activity occurring within a minimum of twenty
(20) feet.
C. The surveillance system storage device or cameras shall be transmission
control protocol/TCP capable of being accessed through the internet by the police
department or their designee on request.
d. If applicable, the applicant shall conduct and pay for any required CEQA
reviews and analyses, and pay for all costs, including those of the City, associated with
project review under CEQA.
Commercial cannabis businesses shall create and maintain an active
account within the State's track and trace system prior to commencing any commercial
cannabis retail activity. In the event of system failure, the business shall keep a hard
copy record and transfer the information to the track and trace system within 24 hours of
the system being available.
f. No physical modification of the licensed premises is allowed without
written prior permission by the City of Santa Ana and payment of any additional fees
required by the City.
Ordinance No. NS -2944
Page 13 of 33
g. Commercial cannabis business businesses shall provide adequate off-
street parking and comply with the City of Santa Ana Municipal Code parking
requirements in order to service customers without causing negative impact.
h. The commercial cannabis business shall provide adequate disabled
access parking per the requirements in the California Building Code.
L The commercial cannabis business shall minimize nuisances such as
trash, litter, and graffiti.
j. Any and all signage, packaging, and facilities shall not be 'attractive', as it
is defined by the State, to minors.
k. Commercial cannabis business facilities shall be required to provide an air
treatment system that ensures off-site odors shall not result from its operations. This
requirement at a minimum means that the facility shall be designed to provide sufficient
odor absorbing ventilation and exhaust systems so that any odor generated inside the
location is not detected outside the building, in any adjacent tenant suites, on adjacent
properties or public rights-of-way, or within any other unit located within the same
building as the facility if the use occupies only a portion of a building.
I. The commercial cannabis business shall comply with all State regulations
regarding:
i. Testing, labeling and storage of all cannabis products.
ii. Use of appropriate weighing devices.
iii. Electrical and plumbing regulations subject to periodic and
unannounced inspections to ensure compliance.
iv. State deadlines for applying for a State license and receiving a
State license within six (6) months after the date the State begins
issuing licenses. This may be waived if the State has longer delays
in issuing licenses of the type the commercial cannabis business
seeks.
M. The commercial cannabis business shall maintain a comprehensive
general liability combined single occurrence insurance policy issued by an "A" rated
insurance carrier in an amount no less than Two Million Dollars, with primary coverage,
naming the City of Santa Ana as additional insured.
No free samples of any cannabis or cannabis product may be distributed
at any time
o. All agents, private security officers or other persons acting for or employed
by a commercial cannabis business shall display a laminated identification badge at
least 2" X 2" in size, issued by the business. The badge, at a minimum, shall include the
business's "doing business as" name and license number, the employee's first and last
name, and a color photo of the employee that shows the full front of the employee's
face.
Ordinance No, NS -2944
Page 14 of 33
P. All private security officers acting for or employed by a commercial
cannabis business shall be licensed by the State and issued a business license from
the City of Santa Ana.
q. The commercial cannabis business shall have a centrally -monitored fire
and burglar alarm system which shall include all perimeter entry points and perimeter
windows and the building or portion of the building where the business is located shall
contain a fire -proof safe or fire proof filing cabinet and include a safety and security
plan.
r. The commercial cannabis business shall ensure a licensed alarm
company operator or one or more of its registered alarm agents installs, maintains,
monitors and responds to the alarm system. The alarm company shall obtain a City of
Santa Ana business license.
S. The commercial cannabis business shall provide the name and phone
number of an on-site staff person to the police department and the Code Enforcement
Division of the Planning and Building Agency for notification if there are operational
problems with the establishment.
t. The commercial cannabis business must obtain and maintain a valid City
business license at all times as a condition for receiving, renewing, and maintaining its
regulatory safety permit.
U. Occupancy shall not exceed that required under the Uniform Building
Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the
main entrance.
V. For any commercial cannabis business with two (2) or more employees,
the business owner shall attest that he/she has entered into a labor peace agreement
and provide a copy of the agreement to the City.
W. Each commercial cannabis business owner, operator(s) and employee(s)
shall complete a criminal background check and wear a visible photo ID at all times
during working hours. Owners, operators, employees, managers or volunteers may not
have been convicted of, or pled guilty/no-contest to a felony or misdemeanor drug
charge within the past four (4) years; nor shall they be a person required to register as a
controlled substance offender pursuant to Health & Safety Code section 11590.
X. All signage for the commercial cannabis business must comply with Article
XI of Chapter 41 of the Santa Ana Municipal Code.
Y_ Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
4. Additional Operational Standards for Adult -Use Cannabis Retail
Business
Ordinance No. NS -2944
Page 15 of 33
a. At all times the Adult -Use cannabis retail business is open, it shall provide
at least one private security guard who is licensed, possesses a valid Department of
Consumer Affairs "security guard card", and has a valid business license from the City
of Santa Ana.
b. The private security guard and adult -use retail cannabis business
personnel shall monitor the site and the immediate vicinity of the site to ensure that
patrons immediately leave the site and do not consume cannabis in the vicinity of the
retail business or on the property or in the parking lot.
C. Exterior signage shall comply with Article XI of Chapter 41 of the Santa
Ana Municipal Code. Interior signage or advertising may not be visible from the exterior.
Retail cannabis businesses must comply with the advertising and marketing provisions
of Business and Professions Code §§ 26150-26155.
d. There shall be no on-site sales of alcohol or tobacco products, (excluding
rolling papers and lighters) and no on-site consumption of food, alcohol or tobacco by
patrons.
e. Hours of operation shall be limited to: 7 a.m. to 10 p.m. daily. No licensed
retail business shall be open to the public between the hours of 10:01 p.m. and 6:59
a.m. of any day.
f. The Adult -Use cannabis retail business shall notify patrons of the following
both verbally and through posting of a sign in a conspicuous location:
Secondary sale, barter or distribution of adult -use cannabis is
crime and can lead to arrest.
That loitering on and around the retail site is prohibited by California
Penal Code § 647(e) and that patrons must immediately leave the
site and not consume cannabis in the vicinity of the retail site or on
the property or in the parking lot.
iii. A warning that patrons may be subject to prosecution under federal
cannabis laws.
iv. That the use of cannabis may impair a person's ability to drive a
motor vehicle or operate machinery.
g. No one under the age of 21 shall be allowed to enter an Adult -Use
cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use
cannabis RSP issued by the City and retail license issued by the State, and the licensed
premises for the adult -use cannabis license and medicinal cannabis license are the
same in accordance with Business and Professions Code section 26140.
Ordinance No. NS -2944
Page 16 of 33
h. If non -cannabis food is distributed, the retail business shall comply with all
relevant State laws, County and City ordinances pertaining to the preparation,
distribution and sale of food.
i. All Adult -Use cannabis retail businesses shall establish and implement a
program to incentivize the recycling of used containers. Failure to establish and
implement a program to incentivize the recycling of used containers will result in a
violation of the terms of the required commercial cannabis Operating Agreement
requiring sustainable building or business practices.
j. Adult -Use cannabis retail businesses shall also record on the video
surveillance system point-of-sale areas and areas where cannabis goods are displayed
for sale.
k. Adequate signage shall clearly state who has inspected any cannabis
product for pesticides, or other regulated contaminants, distributed at this location.
I. Shipments of cannabis goods may only be accepted during regular
business hours.
M. Inventory shall be secured using a lockable storage system during non-
business hours.
No cannabis product shall be visible from the exterior of the business.
o. All required labelling shall be maintained on all product, as required by
State law, at all times.
Educational tours of adult -use retail cannabis businesses shall be allowed.
q. A permitted commercial cannabis retail business shall have 180 days after
permit issuance by the City of Santa Ana to operate. A permitted commercial cannabis
retail business that ceases to operate for more than 90 calendar days shall be deemed
"abandoned" and the permit shall be forfeited. A permitted commercial cannabis
business may temporarily suspend operations for a period of time as may be
reasonably required to affect upgrades, modifications, repairs, or other property issue
mitigations as approved by the Director of Planning and Building or his or her designee.
For the purposes of this section, 'operate" shall mean that the gross receipts fees
charged for the business exceed the fee per square foot calculations by the end of the
180 -day period.
5. Additional Operational Standards for Commercial Cannabis Retail
Delivery Services
a. Commercial cannabis retail deliveries may be made only from a
commercial cannabis retail business permitted by the City in compliance with this
article, and in compliance with all State regulations.
Ordinance No. NS -2944
Page 17 of 33
b. All employees who deliver cannabis shall have valid identification and a
copy of the commercial cannabis retail business' Regulatory Safety Permit and State
license at all times while making deliveries.
C. All commercial cannabis retail businesses shall maintain proof of vehicle
insurance for any and all vehicles being used to transport cannabis goods as required
by State law.
d. Deliveries may only take place during normal business hours of the
commercial cannabis retail business.
e. During delivery, the delivery employee shall maintain a physical or
electronic copy of the delivery request and shall make it available upon request by the
licensing authority and law enforcement officers. The delivery request documentation
shall comply with State law.
f. A licensed delivery employee shall not leave the State of California while
possessing cannabis products.
g. A commercial cannabis retail business shall maintain a list of all deliveries,
including the address delivered to, the amount and type of product delivered, and any
other information required by the State.
h. A manifest with all information required in this section shall accompany
any delivery person at all times during the delivery process and delivery hours.
i. Any delivery method shall be made in compliance with State law, as
amended, including use of a vehicle that has a dedicated GPS device for identifying the
location of the vehicle (cell phones and tablets are not sufficient).
j. Each delivery request shall have a receipt prepared by the commercial
cannabis retail business with the following information:
i. Name and address of the commercial cannabis retail business
ii. The name of the employee who delivered the order
iii. The date and time the delivery request was made
iv. The complete delivery addresses
V. A detailed description of the cannabis goods requested for delivery
including the weight or volume, or any accurate measure of the
amount of cannabis goods requested.
vi. The total amount paid for the delivery including any fees or taxes.
k. At the time of the delivery, the date and time delivery was made, and the
signature of the person who received the delivery.
I. No cannabis delivery vehicle shall display signs, decals or any other form
of advertisement with the exception of a maximum four -inch by four -inch decal.
Ordinance No. NS -2944
Page 18 of 33
m. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during regular business hours.
6. Additional Operational Standards for Commercial Cannabis Testing
Facilities or Laboratories
a. A licensed cannabis testing facility or laboratory business, its owners and
employees may not hold an interest in any other cannabis business except another
testing laboratory business.
b. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
C. Educational tours of cannabis testing facility/laboratory businesses shall
be allowed.
7. Additional Operational Standards for Commercial Cannabis
Manufacturing Facilities
a. Commercial cannabis manufacturing facilities are prohibited from using
volatile solvents in the manufacturing process as defined in the California Health and
Safety Code 11362.3(d) and as further defined in the California Health and Safety Code
11362.775(b)(1)(A) and as amended from time to time, unless a conditional use permit
(CUP) for volatile solvents is applied for and granted pursuant to Chapter 41 of the
Santa Ana Municipal Code.
b. A licensed commercial cannabis non-volatile manufacturing facility may
conduct all activities permitted by the State. This includes but is not limited to: non-
volatile extractions, repackaging and relabeling, infusions and extractions.
C. Any manufacturing that will be conducted by the commercial cannabis
business shall be included on the application. No additional manufacturing activity can
be conducted without notifying the Executive Director of the Planning and Building
Agency or his or her designee, after which a determination will be made if the new
activity may commence with or without modification to the RSP or if a new RSP is
required.
d. At all times, the commercial cannabis manufacturing facility will be
compliant with all State regulations for cannabis manufacturing including Health and
Safety Code 11362.775, as amended from time to time. Signage shall be posted
regarding the type(s) of chemicals being used at the manufacturing facility.
e. Cannabis manufacturing facilities shall not contain an exhibition or product
sales area or allow for retail distribution of products at that location unless the facility is
co -located with an approved commercial cannabis retail business with a RSP.
f. Extraction equipment and extraction process utilizing hydrocarbon
solvents shall be located in a room or area dedicated to extraction.
Ordinance No. NS -2944
Page 19 of 33
g. All commercial cannabis manufacturing/processing facilities shall comply
with any and all applicable safety guidelines adopted by the Orange County Fire
Authority, the State of California, and/or the City of Santa Ana for cannabis plant
processing and extraction.
8. Additional Operational Standards for Indoor Commercial Cannabis
Cultivation Facilities
a. There shall be no exterior evidence of cannabis cultivation from a public
right-of-way.
b. The Building Official may require additional specific standards to meet the
California Building Code and Fire Code, including but not limited to installation of fire
suppression sprinklers.
C. Compliance with Section 13149 of Water Code as enforced by the State
Water Resources Control Board is required.
d. All commercial cannabis cultivation facilities shall comply with any and all
applicable safety guidelines adopted by the Orange County Fire Authority, the State of
California, and/or the City of Santa Ana for cannabis carbon dioxide enrichment
systems.
e. Cannabis cultivation facilities shall not contain an exhibition or product
sales area or allow for retail distribution of products at that location unless the facility is
co -located with an approved commercial cannabis retail business with a RSP.
9. Additional Operational Standards for Commercial Cannabis
Distribution Facilities
a. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
b. A distributor shall ensure that all cannabis goods stored in compliance
with all applicable State regulations to ensure conformance to any and all applicable
Track and Trace systems required by the State.
C. Employee breakrooms, eating areas, changing facilities, locker rooms and
bathrooms shall be completely separated from the storage areas.
Section 40-9. Commercial Cannabis Selection Process.
1. Commercial Cannabis— Registration Application and Regulatory
Safety Permit Required
Ordinance No. NS -2944
Page 20 of 33
a. Existing medicinal cannabis business operators, or those with pending
applications for a medicinal RSP, who desire to operate an adult cannabis retail
business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before
December 14, 2017. The Director of Planning and Building shall review such
application and issue the RSP, without consideration of the merit based point system,
so long as they satisfy all other requirements of this article and Chapter 18.
b. The Regulatory Safety Permit ("RSP") selection process will be conducted in
two phases, Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit
Application). Registration Applications will be reviewed by the Director of Planning and
Building or designees(s) for completeness and compliance, and if eligible, will be placed
on the "Regulatory Safety Permit ("RSP") Eligibility List" and entered into the Phase 2
Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has
established a merit based point system for commercial cannabis retail businesses to
objectively award permits as described in the Regulatory Safety Permit Application.
Phase 1 — Registration Application
a. Following the adoption of this article, the Director of Planning and Building
shall prepare commercial cannabis business registration application forms and a related
administrative policy. Each commercial cannabis business interested in operating
pursuant to this article may submit an application together with a non-refundable
processing fee in an amount established by the City Council.
b. The Registration Application period shall be thirty (30) calendar days from
the date the applications are released. Following the application period, the Director of
Planning and Building or designee(s) shall stop accepting applications and review all
applications received in Phase 1. Each application that is complete and in compliance
with the application requirements in Phase 1 shall be placed on the "RSP Eligibility List"
and shall be notified in writing whether they are a "RSP Eligible Applicant" or not. Each
applicant on the RSP Eligibility List may then choose to file an application for a RSP in
Phase 2.
C. The requirements for Phase 1 include but are not limited to:
All application documents required in the City's Phase 1
Registration Application package.
ii. Application was submitted during the application period.
iii. Application forms are filled out completely.
iv. Business Owner(s)/Applicant(s) referenced on the application
provides a Live Scan that was conducted within 14 days prior to
submitting the application.
v. Phase 1 application fee is paid.
Ordinance No. NS -2944
Page 21 of 33
vi. A signed statement that the proposed location of the commercial
cannabis business on the application meets the zoning criteria
established in this article including, but not limited to, any and all
sensitive use separation criteria required by this article.
vii. Proof of site control for commercial cannabis retail businesses
submitting Phase 1 applications on or after July 1, 2018.
d. The Director of Planning and Building or his or her designee(s) shall
determine whether each application demonstrates compliance with the minimum
requirements (above) and be placed on the RSP Eligibility List and entered into the
Phase 2 application and review process.
e. The Director of Planning and Building or his or her designee(s) shall review
each application upon submission and ensure that the application is complete.
Incomplete applications will be promptly rejected and the applicant shall be notified in
writing of the deficiencies. The applicant shall be given an opportunity to cure any
incomplete or deficient application prior to the conclusion of the application processing
term, if such time period is applicable.
3. Phase 2 - Regulatory Safety Permit Application
a. Each applicant identified on the RSP Eligibility List may choose to
complete and file a RSP application to the Director of Planning and Building. The
application shall be filed together with a nonrefundable fee as established by resolution
of the City Council, to defray the cost of investigation required by this article.
b. The RSP application period shall be open for thirty (30) calendar days and
may run concurrently with the Phase 1 review period. Following the RSP application
period, the Director of Planning and Building or designee(s) shall stop accepting
applications and review all applications received in Phase 2.
C. The Director of Planning and Building or designee(s) will review all
application documents required in the City's Phase 2 application package plus the
additional requirements in subsection (d) below. The Director of Planning and Building
or his or her designee(s) will use a merit based point system to review and rank each of
applications from the most to the least points and objectively award the top applicants a
RSP. A complete description of the merit based point system and all merit based point
considerations shall be included with the application forms.
Phase 2 requirements include but are not limited to:
All application documents required in the City's Phase 2 RSP
application package.
Phase 2 application fee is paid and a comprehensive owner
background check is completed.
Ordinance No. NS -2944
Page 22 of 33
iii. The Building Official or designee has inspected all structures in
which the use is located to determine that all applicable standards
and requirements are met. If a building permit is required for site
improvements, Permit issuance will be deferred until a certificate of
occupancy or other building permit approval is issued. Additionally,
the Building Official has determined that there are no notices of
nuisance or other code compliance issues recorded or on the
property.
iv. The Planning Manager or designee has issued zoning clearance
documenting compliance with the following:
1. The use is permitted;
2. All land use permits, if any, have been approved and all
conditions of approval have been met or are in good
standing; and,
3. No zoning violations exist on the property.
e. The Director of Planning and Building or his or her designee(s) shall
review each application upon submission and ensure that the application is complete.
Incomplete applications will be promptly rejected and the applicant shall be notified that
business day of the deficiencies. The applicant shall be given an opportunity to cure any
incomplete or deficient application prior to the conclusion of the application processing
term, if such time period is applicable.
3.1 Commercial Cannabis— Registration Application and Regulatory
Safety Permit for Additional Commercial Cannabis Business Activities on the
Same Premises (Co -Location)
a. An existing commercial cannabis business with an RSP may co -locate
additional non -retail commercial cannabis business activities (cultivation, distribution,
and/or manufacturing) by applying for a new RSP for the additional use(s). The new
RSP must meet the all requirements of the Santa Ana Municipal Code except that
background checks (live scans) shall only be required for any new staff as outlined in
Section 40-8. A single RSP that lists any and all approved cannabis business
activity/activities may be renewed annually thereafter.
b. Pending RSP applicants wishing to co -locate additional non -retail (cultivation,
distribution, and/or manufacturing) uses may submit a new RSP for any of the non -retail
commercial cannabis business activities. The additional RSP must meet the all
requirements of the RSP except that background checks (live scans) shall only be
required for any new staff as outlined in Section 40-8. A single RSP that lists any and all
approved cannabis business activity/activities may be renewed annually thereafter.
c. New commercial cannabis business applicants — co -location.
1. New commercial cannabis retail applicants wishing to co -locate additional
non -retail (cultivation, distribution, and/or manufacturing) uses shall submit a
Ordinance No. NS -2944
Page 23 of 33
separate RSP for the proposed retail activity and another RSP for any of the
non -retail commercial cannabis business activities. Each RSP application will
be evaluated independently and must meet any applicable requirements of
the RSP as outlined in Sections 40-8 and 40-9, including but not limited to
merit evaluation and additional separation requirements for the retail RSP. A
single RSP that lists any and all approved cannabis business activity/activities
may be renewed annually thereafter.
New non -retail commercial cannabis applicants wishing to co -locate
additional non -retail (cultivation, distribution, and/or manufacturing) uses may
submit a single RSP for the proposed activity or activities. The RSP
application must meet any applicable requirements of the RSP as outlined in
Sections 40-8 and 40-9. A single RSP that lists any and all approved
cannabis business activity/activities may be renewed annually thereafter.
4. Regulatory Safety Permit Annual Renewal
a. Applications for the renewal of a permit shall be filed with the Director of
Planning and Building or designee(s) at least sixty (60) calendar days before the
expiration of the current permit. Temporary permits will not be issued. Any permittee
allowing their permit to lapse or which permit expired during a suspension shall be
required to submit a new application, pay the corresponding original application fees
and be subject to all aspects of the selection process.
b. Any person desiring to obtain a renewal of their respective permit shall file
a written application under penalty of perjury on the required form with the Director of
Planning and Building or her or her designee(s) who will conduct a review. The
application shall be accompanied by a nonrefundable filing fee established by the City
Council to defray the cost of the review required by this article. An applicant shall be
required to update the information contained in their original permit application and
provide any new and/or additional information as may be reasonably required by the
Director of Planning and Building or designee(s) in order to determine whether said
permit should be renewed based on compliance with all applicable provisions of the
Santa Ana Municipal Code.
Appeal of Denial of Regulatory Safety Permit/ Denial of RSP Renewal
The City Manager or his or her designee(s) will review all Regulatory Safety
Permit applications and renewal requests, along with all other relevant information, and
determine if a RSP should be granted and/or renewed based on compliance with all
applicable provisions of the Santa Ana Municipal Code. If the City Manager determines
that the permit shall not be granted and/or renewed, the reasons for denial shall be
provided in writing to the applicant. No such denial shall become effective until the
applicant for the regulatory safety permit and/or renewal has been notified in writing by
certified mail of the right to appeal the denial decision pursuant to the provisions of
Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon
decision of a hearing officer as provided for in Chapter 3 of the Santa Ana Municipal
Code. Otherwise, the denial shall become effective after the timely appeal period has
Ordinance No. NS -2944
Page 24 of 33
passed. The matter may be subject to judicial review under the provisions of California
Code of Civil Procedure Sections 1094.5 and 1094.6.
Section 40-9.1. Non -Retail Commercial Cannabis Business (Cultivation,
Manufacturing, Distribution, and Testing Facility/Laboratory) Selection Process.
1. Non -Retail Commercial Cannabis Businesses — Registration Application
(Phase 1) and Regulatory Safety Permit (Phase 2) Required
a. Every Non -Retail -Commercial Cannabis Business shall apply for the
Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application)
in the manner described in Section 40-9, except that the Director of Planning and
Building may accept Phase 1 and Phase 2 applications for a Non -Retail Commercial
Cannabis Business concurrently, and shall review such applications and issue the
Regulatory Safety Permit Application without consideration of the merit based point
system, insofar as the applications satisfy all other requirements of this article and
Chapter 18.
b. Applications for a Non -Retail Commercial Cannabis Business shall be
accepted during normal City Hall business hours and are not subject to the 30 -day
Phase 1 or Phase 2 application periods.
Section 40-10. Audits.
Annual audits. No later than June 30th of every year, each licensed commercial
cannabis business shall file with the City an audit or financial review of its operations of
the previous calendar year. The form and contents of the document shall be specified
by the Executive Director of Finance and Management Services, or his or her
designee(s).
Section 40-11. Inspection and enforcement responsibilities.
The Code Enforcement Division of the Planning and Building Agency may enter
and inspect the location of any commercial cannabis business between the hours of
7:00 a.m. and 10:00 p.m., or at any reasonable time, to ensure compliance with this
article. In addition, any police officer may enter and inspect the location of any
commercial cannabis business and the recordings and records maintained as required
by this article, except that the inspection and copying of private medical records shall be
made available to the police department only pursuant to a properly executed search
warrant, subpoena, or court order. It is unlawful for any owner, responsible person,
landlord, lessee, member including but not limited to a member engaged in the
management), or any other person having any responsibility over the operation of the
commercial cannabis business to refuse to allow, impede, obstruct or interfere with an
inspection, review or copying of records and closed-circuit monitoring authorized and
required under this article, including but not limited to, the concealment, destruction, and
falsification of any recordings, records, or monitoring.
Section 40-12. Violation and enforcement.
Ordinance No. NS -2944
Page 25 of 33
1. Violation/enforcement.
Each and every violation of this article shall constitute a separate violation and
shall be subject to all remedies and enforcement measures authorized by this Code.
Additionally, as a nuisance per se, any violation of this article shall be subject to
injunctive relief, revocation of the commercial cannabis business Regulatory Safety
Permit, revocation of the certificate of occupancy for the location, disgorgement and
payment to the City of any and all monies unlawfully obtained, costs of abatement,
costs of investigation, attorney fees, and any other relief or remedy available at law or
equity. The City may also pursue any and all remedies and actions available and
applicable under local and State laws for any violations committed by the commercial
cannabis business and persons related or associated with the business.
Suspension or revocation.
When an authorized City of Santa Ana representative finds that any person
holding a Regulatory Safety Permit under the provisions of Chapter 40 has violated the
provisions of this chapter or is found guilty of conduct which would form the basis of
denial of the Regulatory Safety Permit as set forth in Article XIII of Chapter 18, s/he may
revoke or suspend the permit. No such revocation shall become effective until the
Regulatory Safety Permit holder has been notified in writing by certified mail of the right
to appeal the revocation decision pursuant to the provisions or Chapter 3 of this Code. If
a timely appeal is filed, the revocation shall be effective only upon decision of a hearing
officer as provided for in Chapter 3 of the Santa Ana Municipal Code. Otherwise, the
revocation shall become effective after the timely appeal period has passed.
3. State License Suspension/Revocation.
Revocation or suspension of a Licensee's State issued commercial cannabis
business permit or license by the State shall constitute a violation of this article and
result in revocation of the Licensee's RSP.
Section 40-13. Transfer of Ownership.
1. Upon the transfer of any interest in a commercial cannabis business, the
Regulatory Safety Permit shall be null and void. Any person, firm or entity desiring to
own and operate the commercial cannabis business shall make a new Regulatory
Safety Permit application. Prior to or concurrent with the submission of said application
the transferee shall obtain all required business licenses, post all required security
deposits, acquire all necessary, certificates, permits or other licenses allowing the doing
of any act which the person paying or holding the same would not otherwise be entitled
to do; and any permit, license, variance or other instrument of approval or evidence that
any conditions exist as required by any other section of this Code or by any statute or
code provisions of the state must first be obtained or complied with before the doing of
any act or thing for which it is required. A fee as established by resolution of the City
Council shall be payable for each such application involving transfer of any interest in
an existing commercial cannabis retail business. The provisions of this section shall
Ordinance No. NS -2944
Page 26 of 33
apply to any person, firm, or entity applying for a Regulatory Safety Permit for premises
previously used as such establishment.
2. Any such transfer of any interest in an existing commercial cannabis
business or any application for an extension or expansion of the building or other place
of business of the commercial cannabis retail business shall require inspection and
compliance with section 40-11 of this article.
3. The owner or operator of a commercial cannabis business shall be
responsible for notifying the City of any intention to rename, change management, or
convey the business to another person/entity. Notification to the City must be made a
minimum of sixty (60) days prior to such transfer.
Section 40.14. Limitations on the City's Liability.
To the fullest extent permitted by law, the City shall not assume any liability
whatsoever, with respect to approving any Regulatory Safety Permits pursuant to this
article or the operation of any commercial cannabis business approved pursuant to this
chapter. As a condition of approval of a Regulatory Safety Permit as provided in this
chapter, the applicant or its legal representative shall:
1. Execute an agreement indemnifying the City from any claims, damages,
injuries or liabilities of any kind associated with the registration or operation of the
commercial cannabis business or the prosecution of the applicant or business or its
members for violation of federal or State laws;
2. Maintain insurance in the amounts and types that are acceptable to the
City Attorney or his or her designee;
3. Name the City as an additionally insured on all City required insurance
policies;
4. Agree to defend, at its sole expense, any action against the City, its
agents, officers, and employees related to the approval of a Regulatory Safety Permit;
and,
5. Agree to indemnify and reimburse the City for any court costs and attorney
fees that the City may be required to pay as a result of any legal challenge related to
this ordinance and/or the City's approval of a Regulatory Safety Permit. The City may,
at its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the operator of its obligation hereunder.
Section 40-15. Fees and Taxes.
All commercial cannabis businesses shall pay applicable fees and taxes, which
shall include one or more of the following:
1. Application Fees. The business owner shall submit a non-refundable fee
to cover the cost of processing an application for the commercial cannabis business.
Ordinance No. NS -2944
Page 27 of 33
These fees may be divided into two fees according to Registration Application Fee
(Phase 1) and RSP Application Fee (Phase 2).
2. Regulatory Safety Permit Renewal Fees. The business owner shall submit
non-refundable fee to cover the cost of processing an application renewal annually.
3. Business License Taxes. The business owner shall at all times maintain a
current and valid City of Santa Ana business license and shall pay all business license
taxes, deposits, charges, fees, deficiencies, penalties, interest, and other associated
assessments as may be required pursuant to ordinances of the City of Santa Ana
and/or the Santa Ana Municipal Code.
4. Operating Agreement Fees.
5. Additional cannabis -specific gross receipts, excise taxes, or other
municipal tax approved by the voters of the City of Santa Ana.
6. All required state taxes including sales and use taxes, business/franchise
or income taxes, payroll taxes, etc.
7. All required federal taxes.
Section 6: Section 18-620 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Sec. 18-620. - Compliance with this article and state law.
(a) It is unlawful for any person to:
(i) Cause, permit or engage in the giving away of marijuana, or
(ii) Own, establish, operate, use or permit the establishment or
operation of a medical marijuana collective or cooperative, or to participate
as an employee, contractor, agent, responsible person or volunteer of a
collective or cooperative, except as provided in this article, and pursuant
to any and all other applicable local and state laws.
(iii) The prohibition in subsection (ii) above includes, renting, leasing, or
otherwise permitting a medical marijuana business to occupy or use a
location, vehicle, or other mode of transportation.
(b) It is unlawful for any person to cause, permit or engage in any activity
related to medical marijuana except as provided in Health and Safety Code
Sections 11362.5 et seq., and pursuant to any and all other applicable local and
state laws.
Ordinance No. NS -2944
Page 28 of 33
(c) It is unlawful for any person to knowingly make any false, misleading or
inaccurate statements or representations in any forms, records, filings or
documentation required to be maintained, filed or provided to the City under this
article, or to any other local, state or federal government agency having
jurisdiction � over any of the activities of collectives.
(d) It shall be the sole responsibility of the members engaged in the
management of the collective to ensure that the collective is at all times operating
in a manner compliant with all applicable state laws and this article. Nothing in
this article shall be construed as authorizing any actions which violate state law
with regard to the cultivation, transportation, provision, and sale of medical
marijuana.
(e) Cultivation of Marijuana
(1) Personal Cultivation. Individuals 21 years of age or older may
plant, cultivate, harvest, dry, or process up to (6) living
marijuana plants for personal (non-commercial) use in a private
residence or accessory structure to a single private residence in
the City of Santa Ana and must comply with the following
requirements:
(i) The marijuana cultivation area shall be located indoors
within a private residence or accessory structure on a
single parcel of property;
(ii) No more than six (6) living marijuana plants is permitted
for indoor personal cultivation;
(iii) Marijuana in excess of 28.5 grams produced by plants
kept for indoor personal cultivation must be kept in a
locked space on the grounds of the private residence not
visible from the public right -of way.
(iv) There shall be no exterior visibility or evidence of
marijuana cultivation outside the private residence from
the public right-of-way, including but not limited to any
marijuana plants, equipment used in the growing and
cultivation operation, or any light emanating from the
cultivation; or
(v) The cultivation may not violate any California Building,
Electrical or Fire Codes or any other health and safety
standards.
(2) Commercial Cultivation. Commercial cultivation of marijuana or
cannabis is prohibited anywhere in the City except as allowed
and regulated in Chapter 40 of the Santa Ana Municipal Code.
(3) Outdoor Cultivation. Outdoor cultivation of marijuana or medical
marijuana is prohibited anywhere in the City. No person,
including a qualified patient or primary caregiver, shall engage,
Ordinance No. NS -2944
Page 29 of 33
permit, or participate in the outdoor cultivation of marijuana in
the City.
(4) Reserved.
(5) Public Nuisance Prohibited.
(i) It is hereby declared to be unlawful and a public nuisance for
any person owning, leasing, occupying, or having charge or
possession of any parcel within the City to create a public nuisance
in the course of cultivating marijuana plants or any part thereof in
any location, indoor or outdoor, except as allowed and regulated in
Chapter 40 of the Santa Ana Municipal Code. A public nuisance
may be deemed to exist, if such activity produces:
(1) Odors which are disturbing to people of
reasonable sensitivity residing or present on
adjacent or nearby property or areas open to the
public;
(2) Repeated responses to the parcel by law
enforcement personnel;
(3) A repeated disruption to the free passage of
persons or vehicles in the neighborhood,
excessive noise which is disturbing to people of
normal sensitivity on adjacent or nearby property
or areas open to the public;
(4) Any other impacts on the neighborhood which
are disruptive of normal activity in the area
including, but not limited to, grow lighting visible
outside the dwelling, excessive vehicular traffic
or parking occurring at or near the dwelling, and
excessive noise emanating from the dwelling.
(5) Outdoor and Commercial growing and cultivation
of marijuana, except as allowed and regulated in
Chapter 40 of the Santa Ana Municipal Code.
(f) A permitted medical marijuana dispensary may deliver medical marijuana
only to a qualified patient or caregiver. Medical marijuana delivery services by
dispensaries possessing regulatory safety permits must comply with Business
and Professions Code §19340. Delivery of cannabis from a dispensary permitted
pursuant to this Chapter can only be made in a city or county that does not
expressly prohibit it by ordinance. Delivery services by dispensaries not in
possession of regulatory safety permits is expressly prohibited.
(g) Non -Retail Commercial Cannabis Businesses for Medicinal and Adult -Use
Cannabis as defined in Chapters 18 and 40 of the Santa Ana Municipal Code
(SAMC) are permitted subject to the regulations and standards contained within
Chapter 40 of the SAMC.
Ordinance No. NS -2944
Page 30 of 33
Section 7: Section 8-95 of the Santa Ana Municipal Code is hereby amended to read as
follows:
Sec. 0-95. Certificate of occupancy (Chapter 1, Division II, Section 111).
Chapter 1, Division II, Section 111.1 of the building code is amended to read in
full as follows:
Chapter 1, Division II, Section 111.1 --Certificate of Occupancy
(1) Use and occupancy. No building or structure shall be used
or occupied, and no change in the existing occupancy
classification of a building or structure or portion thereof shall
be made, until the building official has issued a certificate of
occupancy therefor as provided herein. Issuance of a
certificate of occupancy shall not be construed as an
approval of a violation of the provisions of this code or other
ordinances of the jurisdiction.
Exception: Certificates of occupancy are not required for
work exempt from permits under Section 105.2
(2) No alteration to an existing building which changes the floor
area of the building or which changes the means of egress
from the building shall be made until the building official has
issued a certificate of occupancy therefor as provided herein.
(3) No change of occupant within a building or portion thereof
shall be made until the building official has issued a
certificate of occupancy therefor as provided herein.
EXCEPTION: Group R, Divisions 2 and 3, and Group U
Occupancies.
(4) Code violations—Disconnection of utilities.
(i) No building or structure shall be occupied, nor shall a
business operate without a valid Certificate of Occupancy. A
business operating in a manner inconsistent with its
Certificate of Occupancy is operating in violation of this Code
provision.
(ii) Violation of this Code provision may result in the
disconnection of any or all utilities.
(iii) A building, structure, or business whose utilities have
been disconnected shall not have the utilities reconnected
until an inspection has been made by the city's building
official and the building official has determined that the
building complies with this code.
Ordinance No. NS -2944
Page 31 of 33
(iv) A building or structure that is new construction can
likewise not be occupied or its utilities connected until an
inspection has been made by the city's building official and
the building official has determined that the building complies
with this Code.
(v) Removing or defacing a notice posted in relation to
violations of this Code provision or this code, shall constitute
a separate and distinct violation of this Code provision.
(5) No building or structure shall be connected with utility
services, nor shall a building or structure whose electrical
service has been disconnected be reconnected with
electrical service until an inspection has been made and the
building official has determined that the building does not
constitute an unsafe building.
Section 8. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
ADOPTED this 1 st day of May, 2018.
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By:�L
Lisa Storck
Assistant City Attorney
Ordinance No. NS -2944
Page 32 of 33
AYES: Councilmembers: Benavides, Martinez, Solorio,
Villegas (4)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: Pulido Sarmiento (2)
NOT PRESENT: Councilmembers: Tinalero (1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -2944 to be the original ordinance adopted by the
City Council of the City of Santa Ana on May 1, 2018, and that said ordinance
was published in accordance with the Charter of the City of Santa Ana.
Date: - /If
Maria D. Huizar
Clerk of the Council
City of Santa Ana
Ordinance No. NS -2944
Page 33 of 33